The probe of CBN, others

The ongoing probe of the Central Bank of Nigeria (CBN) and related entities is expected to sanitise the nation’s financial system, if it is handled transparently. President Bola Tinubu might have meant well by ordering investigation into the affairs of the CBN following the suspension of Godwin Emefiele as the governor of the apex bank on June 9. Consequently, a special investigator, Mr. Jim Osayande Obazee, has been appointed by the President to carry out the task. Obazee is the Chief Executive Officer of the Financial Reporting Council of Nigeria. In 2014, he was also saddled with a similar duty following the removal of then CBN Governor, Lamido Sanusi, by former President Goodluck Jonathan.

Apart from the CBN, other agencies to be investigated included the Nigerian National Petroleum Company Limited (NNPCL), Nigeria Deposit Insurance Corporation (NDIC), the Nigerian Security, Printing and Minting Company (NSPMC), Asset Management Company of Nigeria (AMCON), Nigeria Export-Import Bank (NEXIM) and the Nigerian Commodity Exchange (NCX). Others were the Federal Mortgage Bank of Nigeria (FMBN), Bank of Agriculture (BOA), Bank of Industry (BoI), Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) as well as its sister agency, NIRSAL Mortgage Bank Finance, and Infrastructural Company of Nigeria.

Although these agencies were added to the list, the probe is majorly on the CBN.   The letter ordering the probe was signed by the President in accordance with the fundamental objectives set forth in Section 15(5) of the Constitution (as amended). The special investigator will report directly to the President on a weekly basis. The directive mandates Obazee to take immediate steps to ensure the strengthening and probity of the government business entities involved, including ensuring blockage of leakages in the CBN, and providing a comprehensive report on public wealth, alleged to be currently in the hands of corrupt individuals and establishments.

To ensure a seamless probe, the investigator has been mandated to get ‘suitably experienced, competent and capable team and work with relevant security and anti-corrupt agencies to deliver on the assignment.’ The directive is silent on the timeframe for the investigator to complete its assignment and submit its findings to the President. No doubt, this is an arduous task that must be done with thoroughness and sincerity of purpose. It must be devoid of witch-hunting or political victimization.

Although the law empowers the Financial Reporting Council to carry out the current probe of the CBN, we agree with experts that considering the scope of the investigation, it would have been better if the federal government had engaged a consortium of audit firms to do the job.   Nigerians are aware of the controversial suspension of Godwin Emefiele as the CBN boss and his subsequent detention and arraignment by the Department of State Services (DSS) on charges of alleged possession of firearms and ammunition. Despite a court order for his release on bail, Emefiele is surprisingly still in the custody of the DSS.

Nigeria’s economy is currently at the crossroads, and public confidence is waning in many entities that are critical to delivering economic growth. We urge the investigating team to be thorough and unbiased in its assignment, bearing in mind that the outcome of the probe will likely affect the economy and how the international community sees Nigeria.  The probe of CBN under Sanusi negatively affected the economy with shocks from both domestic and external markets. Such mistakes should be avoided in the present case.

Therefore, the ongoing investigation of the CBN and other entities should not be allowed to affect investors’ confidence in the economy. Recently, President Tinubu told the President of the World Bank, Ajay Banga, that the ongoing forensic audit of the CBN was in the overall interest of the country’s economy.  While there is rot in many government’s entities under probe, the investigation into their operations of these agencies will help to ascertain the level of corruption in them and how to reposition them for accountability and better performance, it will be proper to make the findings public, without exception.

All economic reforms by the Tinubu administration should aim at improving the nation’s ease of doing business and curbing financial sleaze. The findings of the ongoing probe of the CBN and others should be made public. Those found guilty of any financial malfeasance in these entities must be sanctioned.